B6: Designing an ICT strategy to drive cost reductions within a housing organisation

Transcription

1 B6: Designing an ICT strategy to drive cost reductions within a housing organisation Speakers: Steve Smith Genesis Way Programme Director Genesis Housing Association Rob Sproule Head of ICT Genesis Housing Association Chris Knowles IT Advisory Services Director Baker Tilly

2 Designing an IT strategy to drive cost reductions within a Housing organisation Case Study Genesis Housing Association

3 Know your Destination and the enabling tools Know your Starting point

4 Introduction A burning platform for change Intelligent Design for Change Benchmarking to help leverage value Building the IT Strategy Lessons from implementation Early results

5 A burning platform The economy, stupid (Clinton, 1992) Financial exposure land and property values Regulatory position governance and finance: one to watch (but not in a good way) Changing customer behaviour Control own destiny

6 The right conditions Strong, visionary leadership Amalgamation into one housing association Colleagues desire for change, but done right Transparent appraisal of current state Invest to improve mindset Getting buy-in to change

7 Customer People Drivers of Change Understanding diverse customer needs better Increasing access to services and self-serve opportunities Culture and behaviour shift towards integration and alignment Building and sustaining a talented, accountable work-force Organisation New ways of working that empower staff and free up talent Smarter services, processes and IT that focus on customer outcomes Markets and Portfolio Finance Understanding how our assets and neighbourhoods perform Focusing resources to optimise value Getting close to local communities Creating efficiencies by driving out waste Cost-effective and more responsive management 7 structures

8 Integrated Strategy Driven Blueprint People & Organisation Offices Process Technology 8

9 Enabling tools - Benchmarking Chris Knowles

10 A balanced approach to ICT VFM Do you get value for money from ICT? How can you tell? How you compare on IT governance practices How you compare on key cost ratios How you compare on availability and satisfaction 10

11 Knowing how you compare Do you spend more or less than peers on ICT? It s not that being higher or lower than the average is good or bad just so long as you don t end up there by accident 11

12 Getting your facts straight What do you actually spend your ICT budget on? A surprising number of organisations (across all sectors) are not able to do basic IT spend analysis 12

13 Making change happen What do your ICT people spend their time doing? 40% 15% A basic run v change analysis can be revealing but focus on quality not quantity 13

14 Having the right levers to pull How do you decide between ICT investments? How do you control them? % of SHA reporting no direct Board-level ICT representation 62 % reporting that ICT is seldom or never discussed at Board level 54 % reporting no IT Steering Group (or equivalent) 69 % reporting no ICT project benefits tracking, or postimplementation review 45 14

15 Developing your ICT strategy What should an effective ICT strategy cover? Governance Implementation planning Operations & support Architecture & platforms Cultural change 15

16 Enabling tools Capability Matrix Rob Sproule

17 Capability Assessment Significant gaps End of life applications Flexibility and agility Vendor support and engagement Vendor s capacity to invest Moving fixed costs to variable Opportunities of Cloud SaaS, PaaS etc Ability to support a highly mobile workforce Ability to support a business going through change Agility (low cost entry & exit) Application Portfolio Technology Data Quality Management People & Governance Business Ownership Views and opinions no facts or data Relevance of Technical Skills Non-technical skills Capacity Deployment (Development vs Support) Planning for change Aligning the IT service to a re-shaped business Business engagement with strategic development of the IT service Managing change

18 Application Portfolio Build the to-be Applications Architecture map Replace legacy CRM for Dynamics Replace Repairs Management systems E2E integration (CRM Customer feedback) Replace Legacy Asset Management Introduce a managed service to automate purchase invoice processing Complete automation of the P2P process Introduce Workforce Management (planning and forecasting) Retain Housing, Finance & HR (some needed major reimplementation work)

19 Virtualisation of the entire estate Replace Telephony and Contact Centre Systems Upgraded LAN and some WAN components to Gigabit Hosted Data Centres > prepare for a move into the Cloud Move to the Cloud and introduce Collaboration tools New ways of working Hot desks and Homeworkers HD Video and Audio conferencing everywhere Everyone has access to IT Services Refresh mobile phones (Smartphones for , Intranet and multimedia messaging) Technology

20 Considered options for alternate method of service delivery Shared Services (HAs / LAs) Outsource commoditised services retain Value Add Service Desk Software Development Infrastructure Services Business Analysts & PM Business engagement in development of the IT service Executive and Board level awareness Developing Strategic Partnerships and alliances People & Governance

21 Data Quality Management

22 Aligning Application Architecture and Data Quality Management Data Mastering Customer Management Asset Management Finance & Vendor Management Employee Management Data Consuming / transaction processing Housing Management Other Transactions Decision Support Analytics, Performance Management, Data Warehouse

23 Some lessons learnt... Realising the benefits of new capability is hard work and needs constantly sustaining through transition Transparent accountability for realising benefits Key decisions stay with the business CRM Go/No Go The right conditions for the business to receive the change business readiness is crucial That means... the right culture and behaviours to support new ways of working Rigorously managing third parties Celebrate success along the way (it s hard earned!)

24 Financial Benefits October 2013 Banked Benefits YTD Oct m Bankable Benefits Target to Oct m 955,468 1,121,836 2,080,453 FTE Related Procurement Efficiency Savings 1,101, ,000 3,829,730 FTE Related Procurement Efficiency Savings 24

25 Qualitative benefits... 85% Staff have confidence in Programme Business continuity benefits Smoothest implementation of a piece of software ever (Contact Centre Manager on CRM) Recent Regulatory Judgement Customer satisfaction mostly still holding through the change transformation But a leap of faith still needed as changing staff/customer and stakeholder perception takes time

26 That s all folks... Question time